- GBP/USD steps back from the five-week top.
- US Dollar consolidates losses amid hopes of the early restart of some US states.
- The EU-UK Brexit negotiators will discuss a future timetable for talks, the deadline remains the key issue.
- The US economic docket, virus updates in the spotlight too.
GBP/USD steps back from the five-week top, currently down 0.15% on a day to 1.2607, while heading into the London open on Wednesday. The pair seems to portray the US dollar recovery amid expectations of early economic restoration. Though, the moves are capped ahead of the Brexit negotiations between the European Union (EU) and the UK diplomats.
US President Donald Trump rekindled anticipations that some of the US states could be open for business by May 01 whereas some of them can resort to working sooner. The Republican leader also expected the stocks to regain traction and surge to the previous record highs. It’s worth mentioning that the leader also stopped the US funding of the World Health Organization (WHO) while alleging the institute to favor China on the wrong grounds.
On the other hand, the UK’s Chancellor Rishi Sunak acknowledged, as per the BBC, that there were “tough times” ahead economically. The news also cited one in five deaths now linked to the coronavirus (COVID-19).
By Tuesday, there were 93,873 virus cases in the UK with the death toll rising by 778. The New York Times quoted officials from the Office of National Statistics to anticipate the figures to be 10% higher. In the case of the US, Reuters cites 25,700 deaths out of more than 600,000 known cases.
Amid all these plays, the global remain quiet during Asia with risk-tone curtailing the previous optimism, as shown by the Asian stocks and the US Treasury yields.
Moving on, the Brexit negotiations, actually a video conferencing, between the EU-UK diplomats are likely to entertain the Cable traders. The two sides have been stuck on the deadline with the UK recently warning the bloc to change tactics or face serious ‘problem’, as per the UK Express.
Also likely to keep traders busy could be updates concerning the much-anticipated extension of the British lockdown.
Furthermore, the US data, comprising the Retail Sales, activity numbers and the Fed’s Beige Book, will add to the markets’ watch-list whereas virus updates could keep the driver’s seat.
Technical analysis
A three-week-old ascending trend line, at 1.2535 now, restricts the pair’s immediate declines whereas the upper-line of the one-week-old ascending trend channel, near 1.2660, seems to guard the nearby upside.
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